The shares of commercial stage biotech Clovis Oncology, Inc. (NASDAQ:CLVS) fell ~15% in the pre-market Monday after the company highlighted the need to raise additional capital following a sales decline for its anti-cancer medication Rubraca in 2Q 2022.
The company reported $32.1M of global net product revenue for the period, which indicated a ~13% YoY decline and a ~6% sequential drop from the previous quarter.
Clovis (CLVS) noted that the COVID-related reduction in ovarian cancer diagnoses and fewer patient starts in the U.S. in the previous quarters continued to impact the second-line maintenance treatment.
The company added that despite an ongoing recovery of ovarian cancer diagnoses to the pre-COVID levels, the effect is likely to favor the front-line treatments and unlikely to benefit the second-line indications for several quarters.
While the net loss for the quarter expanded ~7% YoY to $71.3M, the cash and cash equivalents dropped ~34% from the 2021-end to $94.6M even as cash burn fell ~21% YoY to $26.4M.
Citing current funding sources and the Rubraca sales estimates, Clovis (CLVS) highlighted the need to raise additional capital to fund operations and continue as a going concern beyond February of 2023.
The company is looking at funding sources other than equity financing, such as strategic partnerships or licensing arrangements.